Capital gains

[Andz909]

We’ve live in our new house for 1 year and are moving closer to my husbands new job (more than 50miles away). I believe we have a partial exemption from capital gains. Is that correct? And if so how much? 50%? 
Lastly, if our capital gains was around $150k would only $75k get taxed? And at what percentage? 

[rjs]

It's not clear exactly what you mean by "more than 50miles away." The requirement for a partial exclusion of gain is that the distance from your current home to your husband's new job location is at least 50 miles more than the distance from your current home to his old job location.

If you meet that requirement, and you and your husband both owned and lived in your current home for exactly one year, your maximum exclusion would be $250,000. If your gain is only $150,000 the entire gain would be excluded, so you would not pay any tax on the gain.

However, if you sold another home less than two years before selling your current home, and claimed an exclusion for that sale, you cannot claim any exclusion now. In that case, the full gain would be taxable.

You should take a look at IRS Publication 523, Selling Your Home, particularly the section "Does Your Home Qualify for a Partial Exclusion of Gain?," and use Worksheet 1 in that section to calculate what your exclusion would be.

[Bsch4477]

If you have a valid excuse for not complying with all the requirements for the exclusion, you'll get a partial exclusion—not the whole $250,000/$500,000. The amount is ordinarily limited to the percentage of the two years that you fulfilled the requirements. For example, if you own and occupy a home for one year (50% of two years) and have not excluded gain on another home in that time, you may exclude 50% of the regular maximum amount—up to $125,000 of gain for a single taxpayer and $250,000 for married couples.

[NCperson]

@Andz909 - note that it's the exclusion that is reduced, not the capital gain.

Let's assume you moved for a job related reason and sold the home exactly 1 year after purchasing the house and the capital gain was $150,000.

The capital gain is still $150,000 - it does not get adjusted.

What does get adjusted is the exclusion.  if you are filing Joint, the exclusion would be $250,000 instead of $500,000 (50% because you only owned and resided in the home for 12 of the required 24 months).